Whether it’s old-fashioned broadcast TV or streaming web movies, video entertainment is a global industry now. We lay out a few of the up-and-coming names in the space on today’s installment of Trading the Globe.
Start with a U.S. company to get a sense of how big these markets are becoming for global media vendors. Dish (DTV, quote) has reported that its earnings are getting a major boost from Latin America, which now accounts for 18% of the company’s top line.
The trend is accelerating as the satellite TV approach wins them customers in places where infrastructure is not great and the cable build never happened. With wireless becoming ubiquitous, companies like DTV are handily leapfrogging over legacy vendors and becoming real leaders.
Disney (DIS, quote) is in a similar position, with revenue in the emerging world roughly doubling over the last five years. Emerging markets now account for 9% of the company’s business — and they have major aspirations in China, where the Disney Princess mystique has taken off big.
South Africa’s Naspers (NPSNY, quote) is one of the great global media companies and has invested around the emerging world, with a major chunk of China’s Tencent (TCEHY, quote) , Russia’s Mail.ru and significant operations in Brazil as well.
In Mexico, Televisa (TV, quote) retains its 40% stake in Los Angeles-based Univision, which is actually the source of much of its programming. The company just announced unprecedented 23% year-over-year EBITDA growth as they leverage their largely fixed costs, so they have scale on their side and all business lines humming.
And in Russia, CTC Media (CTCM, quote) runs the largest independent TV station. The ad market here is growing 10% a year and the company is trading at barely 13 times earnings — decent value compared to a historic P/E of 19.4.